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Payday Lending: The Global Connections Project Wikia
Payday Lending: The Global Connections Project Wikia This project aims to deconstruct into its constituent parts the payday loan – an artefact that is shaped, and to some extent shapes, the global economy. The payday loan market is framed by intensified global network of the financial system. The actors in this market are customers, multinational companies, and regulators. Social and cultural influences, especially capitalism and consumerism, also play a role framing the payday loan. This wikia uses theoretical concepts illustrated by a case study of a local UK borrower entering the global financial network. The outcome is a simplified model of this financial network. The analysis is based on the assumption that global finance is driven by capitalism, and that global capital flows are one of the most important forces shaping and shaped by the societies, governments and technology. As this wikia grows, further research will focus on the alternative views of the global economy, and specifically to what extent the payday loan market could be symptomatic of the not-so-integrated, crisis-prone global financial markets. Background Payday loan is a financial product that provide borrowers with an advance on their salary. A payday loan is typically a small credit (<£1000) for a short period of time (up to 30 days) provided at a high-cost to the borrower in comparison to alternative methods of borrowing.(CMA, 2014) Important feature of the payday lending market is the consumer: unlike traditional means of financing, payday loan is available to ‘the unbanked’ customers with poor credit rating, low-income, and often belonging to a marginalised group in the society (e.g., minorities, emigrants, single parents, non-educated individuals). Payday lending market affects ~2mln.people in the UK. (Public Accounts Committee, 2013) Thus, the payday loan is a financial instrument of social importance. Moreover, the payday lending industry relies heavily on technology: risk assessment computing, credit rating, and customer applications are all computerised, and, where possible, artificial intelligence substitutes the human labour. Therefore, payday loan is an interesting artefact to analyse in the field of globalization research and science, technology and society studies. Case Study: John the Payday Loan Borrower http://payday-lending.wikia.com/wiki/Case_Study_of_John_the_Payday_Loan_Borrower# Payday loan connections to the key issues in globalization scholarship The Network http://payday-lending.wikia.com/wiki/Network Net vs. Self http://payday-lending.wikia.com/wiki/Net_vs._Self Global capitalism and financial system http://payday-lending.wikia.com/wiki/Global_capitalism_and_financial_system Consumerism http://payday-lending.wikia.com/wiki/Consumerism IT http://payday-lending.wikia.com/wiki/IT Money flows: from a UK payday loan to the global capital markets http://payday-lending.wikia.com/wiki/Money_Flows References Agnew JC (1993) Consumer culture in historic perspective. In Brewer J, Porter R eds. Consumption and the World of Goods. London: Routledge Benkler Y (2006) The Wealth Of Networks. New Haven, CN: Yale University Press. Castells M (2000) End of Millennium. Volume 3 of The Information Age: Economy, Society, and Culture. Oxford: Blackwell Consumer Markets Association (CMA) (2014) Payday lending market investigation. Payday loan products working paper. Available Accessed 10/04/2015. Ferguson M (1992) The Mythology About Globalization. European Journal of Communication 7:1, p.69-93. Ferguson N (2008) The Ascent Of Money. New York: Penguin Press. Held D, McGrew A (2000) T''he Global Transformations Reader: an Introduction to the Globalization Debate.'' Malden MA: Polity Press. Public Accounts Committee (2013) Eighth Report. Regulating Consumer Credit. Available Accessed 10/04/2015. Schirato T, Webb J (2003) Understanding Globalization. SAGE Publications Schor J (1991) The Overworked American. New York: Basic Books. Steger MB (2003) Globalization: A Very Short Introduction. Oxford. Oxford Press Van Dijk JAGM (2005) The Network Society: Social Aspects of New Media. 2nd edition. SAGE PublicationCategory:Browse